Can I Get a Loan After Filing for Bankruptcy?

One reason many people refuse to consider bankruptcy is they believe the damage to their credit history will be so severe they’ll never be able to rebuild it. As a result, they’ll never be able to hold a credit card, buy a car on financing, or worse, get a mortgage to be able to achieve the dream of home ownership. The biggest reason this myth is so widely held as fact is so many people don’t understand how bankruptcy affects your credit, and therefore they don’t realize what kind of an impact it can have.


Here’s an answer that might surprise you: yes! So long as you work hard to improve your credit score and keep up with your monthly payments to build a strong recent credit history, you will be able to get a loan again. It’s important to note this is entirely dependent on you—if you fall right back into the same pitfalls of debt and inability to repay, then you’re going to continue to struggle and find it difficult to get financing or a loan of any type. But if you are diligent and work hard, you may find that within just a few short years you’ll have many different loan options available to you!


It’s no secret that a bankruptcy declaration can deal significant damage to your credit score. As a result, serious consideration should be given when deciding whether to file bankruptcy and you should only file when you cannot reasonably expect to get out of debt in any other manner.

However, don’t let that deter you from considering bankruptcy as an option. When you do file for bankruptcy, your credit score may take a significant hit. Depending on the state of your credit prior to filing, your credit score may not be impacted that severely. However, bankruptcy stays on your record for anywhere between seven to ten years, and in that time you have an opportunity to start building a record of responsible borrowing and prompt repayments. In certain cases, responsible borrowers post-bankruptcy are able to have a credit score of 700 plus in as quickly as two years.

Even in the immediate aftermath of filing for bankruptcy, credit companies will usually offer a small, cash-backed credit line that allows you to make small purchases and then pay them off each month. This is a great way to start immediately rebuilding your credit. Keep up with your monthly payments, keep your balance on this card low, and you should find that within a few short years your credit score will have recovered tremendously. In fact, by the time the bankruptcy declaration fully comes off your record, most people who have remained dedicated and diligent have a better credit score than ever before.

For more information about life after bankruptcy, speak with a Brevard County bankruptcy attorney. A representative from The Buchalter Law Group is standing by! Call us at (321) 320-6088 to request a case evaluation and learn more about how we can help you.
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